Laura Matthews

Sharp falls in technology stock prices are cause for caution but not panic yet, say brokers and investors who have been riding a runaway market to record highs and some stretched valuations.

Ken Griffin, the CEO of Citadel, said on Wednesday he prays the policies that Mayor-elect Zohran Mamdani uses to lead New York City are different from his talking points.

A sizable block trade in the U.S. rates market late last week appeared to be positioning ahead of the Federal Reserve's expected announcement to finally end its long-running balance sheet reduction program, known as quantitative tightening (QT).

Global money managers are circling back to Japan's stock and debt markets, drawn by the promises of its new reflationist government and a desire to diversify from pricier U.S. and European markets.

Sanae Takaichi's surprise victory to become Japan's next prime minister has left investors wondering whether the protégé of the late Shinzo Abe could usher in similar stimulus policies that may boost stocks but leave the yen fragile.

The long-awaited resumption of the Federal Reserve's rate-cutting cycle is likely to cheapen hedging of dollar exposure for foreign investors and increase their motivation to guard more of their U.S. assets against further currency weakness.

The U.S. Labor Department said that economic data releases would pause in a government shutdown, amplifying investor concerns that Friday's monthly employment report would not be published as scheduled.

The effective federal funds rate - the interest banks charge each other for overnight loans to meet reserve requirements - rose unexpectedly last week ahead of quarter end, mainly on the back of shrinking cash balances at foreign banks, according to market participants.

Bond investors are buying longer-term maturities up to 10-year debt and ramping up bets on a steeper yield curve, anticipating that the Federal Reserve will cut interest rates this week after a nine-month pause.

The U.S. dollar has steadied since a record slide earlier this year, but many currency market players still view the greenback as locked in a bearish trend and are bracing themselves for further losses.